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Top Market Forecaster Looks Back at the Fed's Response to the Black Monday Crash

Veteran market forecaster Peter Schiff was not pleased with how the Federal Reserve responded to the Black Monday crash of 1987, where the Dow Jones Industrial Average fell 508 points or over 22%. Schiff, who was 24 at the time, wrote a letter to Fed Chair Alan Greenspan at the time. "I was critical of what he was doing because it didn't seem to jive with what he stood for as far as free markets," Schiff said in an interview with TheStreet. The Federal Reserve issued a statement on October 20, 1987 in an effort to soothe nervous investors: "The Federal Reserve, consistent with its responsibilities as the Nation's central bank, affirmed today its readiness to serve as a source of liquidity to support the economic and financial system." Follow @ScottGamm on Twitter. Watch our entire 20-minute conversation with Peter Schiff: Black Monday made headlines 30 years ago today. Check out our full Crash of '87 Special Report for the ultimate #TBT: What You Need to Know About Black Monday: Explainer Has Wall Street Employed Enough Tech to Protect Against Another Black Monday? When I Think of October, I Think of Black Monday What Led to the Black Monday Crash? Vanguard Founder John Bogle Reflects on Black Monday Originally published Oct. 19.
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